중동부유럽

This Selected Issues paper explores how intersectoral vulnerabilities and risks shifted during 2001–17, and especially after the global financial crisis. It analyzes financial positions at sectoral levels—deposit taking institutions and nonfinancial corporations, households, the public sector, and the Croatian National Bank—by disaggregating them into instruments, currencies, and maturities. The paper used balance sheet analysis to gauge cross-sectional exposures and risks. This approach studies an economy as a system of interlinked sectoral balance sheets. Policies to reduce remaining vulnerabilities are also discussed in the paper. Standard macroeconomic indicators demonstrate that Croatia’s overall external vulnerabilities have declined since 2010. However, the balance sheet matrix shows little improvement in reduction of important cross-sectoral dependencies and liabilities to the rest of the world during 2010–17. One of the recommendations is to encourage deleveraging through specific policy options and strategies.